NEW YORK (TheStreet) -- Ford (F) fell Thursday after the U.S. automaker announced it would decrease the fuel economy ratings for six vehicles and make goodwill payments to owners of approximately 200,000 cars.
The reduction covers all of the Ford's 2013 and 2014 hybrids and plug-in hybrids, along with the 2014 Ford Fiesta. The company said it noted the discrepancies through internal testing and notified the EPA, which then tested the vehicles to calculate the new ratings. In some instances, the reductions dropped the cars' combined fuel economy rating by up to 7 miles per gallon.
Ford said it would make the goodwill payments to account for the difference between the previous and revised ratings.
The stock was down 2.19% to $16.53 at 3:11 p.m.
TheStreet Ratings team rates FORD MOTOR CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FORD MOTOR CO (F) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."